On March 25, 2004, the US Attorney in Pennsylvania commenced an
investigation of Eli Lilly's marketing promotion of Zyprexa (olanzapine),
Prozac (fluoxetine) and Evista (raloxifene).

On April 19, a class action lawsuit was filed in federal court against
Eli Lilly, accusing the company of heavily promoting Zyprexa as a safe and
effective drug for psychotic disorders, while virtually concealing the
risks of side effects from doctors and from the patients themselves.
Zyprexa has been linked to severe side effects including diabetes,
hyperglycemia and pancreatitis. In 2002, both the Japanese Health and
Welfare Ministry and the UK Medicines Control Agency issued emergency
warnings concerning Zyprexa and diabetes-related complications

On May 13, Pfizer pled guilty to criminal charges and civil liabilities
in connection with illegal and fraudulent promotion of unapproved uses of
Neurontin and agreed to pay $430 million in penalties.

On May 18, New York City filed a suit against GlaxoSmithKline, charging
the company with "anticompetitive, fraudulent, and inequitable conduct,"
when it acquired patents for its anti-depressant Paxil, and for obtaining
"frivolous" patents to unfairly keep cheaper, generic versions of the drug
off the market.

On May 26, Italy's finance police ended a two year investigation of
GlaxoSMithKline leading to criminal charges against the company and of
4,440 doctors, including more than 2,500 GPs and 1,700 specialists. It is
reported that GSK spent $278 million in bribes whose purpose was to
influence the doctors' prescribing. The practice, according to British
analysts, is common in the pharmaceutical industry. The doctors have been
criminally indicted and could face jail sentences. According to the suit
"Glaxo employees in Italy in question had offered cash, gifts and prizes
to doctors and other healthcare professionals to encourage them to
prescribe Glaxo drugs."

On June 2, NYS Attorney General filed a lawsuit against GlaxoSmithKline
charging the company with fraudulent marketing of its antidepressant,
Paxil / paroxetine and concealment of the drug's hazardous adverse effects
from physicians.

Fraudulent pharmaceutical marketing practices affect more than
economics, they undermine health and cause preventable deaths.
Multi-national pharmaceutical companies that engage in fraudulent
marketing cause more harm than illicit drug traffickers. Inasmuch as
pharmaceutical companies who engage in fraud have demonstrated that they
are not deterred even when fined hundreds of millions of dollars,
violators should be jailed, not merely fined. Fraudulent drug marketing
practices should, therefore, be criminalized. Pharmaceutical company
employees who violate marketing standards should be prosecuted and held
liable under the same drug enforcement rules that are applied to those who
traffic in illicit drugs.

One of the biggest inquiries into marketing practices in the drugs
industry ended yesterday with Italian police asking for almost 5,000
people to be put on trial, including more than 4,000 doctors and at least
273 employees of the British pharmaceuticals giant, GlaxoSmithKline. Some
face up to five years in jail if tried and convicted.

Italy's revenue guard, the Guardia di Finanza, said in a statement that
GlaxoSmithKline and its predecessor firm had spent €228m (£152m) on
"sweeteners" for doctors, chemists and others over four years. The alleged
bribes ranged from cameras, computers and holidays to outright cash
payments.

The Guardia di Finanza said GlaxoSmithKline "should be held responsible
for corporate crime as its managers and other employees acted in the
company's interest".

A spokesman for GSK said last night it had been "cooperating closely
with the authorities to facilitate their investigations. GSK is committed
to ensuring that all its business practices are of the highest standards
and any breach of that is unacceptable", the spokesman added.

But a British-based pharmaceuticals analyst said yesterday the type of
activity the Italian authorities allege to have uncovered is common
practice among global drug companies.

"In parts of Europe, these things are absolutely rife," he said. "For
example, doctors may be given 'research grants' - but there are no limits
on how they can spend them." He cited cases in which doctors had been
offered cars or holidays as inducements to prescribe a particular brand.

Italy's Adnkronos news agency reproduced what it said was a letter
written by a GlaxoSmithKline district manager contained in the 10,000
pages of evidence assembled by the Guardia di Finanza.

The letter urged sales representatives to approach specialists directly
to get them to prescribe a cancer drug produced by the company. "The
initiative can work well with oncologists who have congresses, investments
from us ... and who have not given us anything in return," the district
manager was quoted as writing. Illicit incentives were said to have been
disguised in the firm's accounts under the headings of "field selling",
"other promotion" and "medical phase IV".

Of the 4,713 people from all parts of Italy facing charges, 4,440 are
doctors. They include more than 2,500 GPs and some 1,700 specialists.

The most serious accusations have been leveled at doctors, pharmacists
and sales representatives alleged to have been involved in a programme
intended to promote Hycamtin, a drug mainly used in the treatment of lung
and ovarian cancers. In some cases, it is claimed, specialists received a
pro rata cash payment based on the number of patients treated with the
drug.

At a press conference yesterday, a senior revenue guard officer,
Giovanni Mainolfi, estimated the investigation was costing
GlaxoSmithKline's Italian subsidiary €400m a year in lost sales.

Thousands
named in Glaxo incentives probe in Italy

MILAN, May 26 (Reuters) - Italian police said on Wednesday they
believed about 4,400 medical professionals and 300 employees in Italy of
pharmaceuticals firm GlaxoSmithKline took part in an illegal incentives
scheme to boost Glaxo's sales.

Italy's finance police, ending a nearly two-year investigation, said
the Glaxo employees in Italy in question had offered cash, gifts and
prizes to doctors and other healthcare professionals to encourage them to
prescribe Glaxo drugs.

"It is not a new situation. Since February 2003, GSK has been
cooperating closely with the authorities to facilitate their
investigations. This cooperation has been acknowledged by the
investigating authority," said a Glaxo spokesman in London.

"GSK is committed to ensuring all of its business practices are of the
highest possible standards and any breach of these is unacceptable," he
said.

Italian police said in a statement Glaxo spent 228 million euros ($276
million) between 1999 and 2002 on the incentives and "should be held
responsible for corporate crime, as its managers and other employees acted
in the company's interest".

Of the 300 Glaxo employees named in the probe, 73 were suspected of
corruption and criminal association, it said.

Prosecutors must now decide whether to seek a trial for those named in
the probe.

Police said the investigation had helped to save 620 million euros per
year in public health spending.

Alliance for Human Research Protection (AHRP) is a national network of lay people and professionals dedicated to advancing responsible and ethical medical research practices, to ensure that the human rights, dignity and welfare of human subjects are protected, and to minimize the risks associated with such endeavors.